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Old 01-05-2006, 11:51 AM   #1
Luisa
I'm a mental nomad
 
Join Date: Nov 2005
Location: Right under your nose
Posts: 78
Anybody know what a change in currency trading platform means?

The Philippine banks just announced that they will be adopting a new dollar-peso trading platform. I have an aunt who has been retired for 2 years now and whom I got to wisen up early on in the 1st year of her retirement to keep her bank investments in US dollars and dollar bank investments with Philippine banks. She also has a dollar insurance package with the same bank's insurance arm, that has 3 more years before it matures. My question is this, with that announcement by local banks, should my aunt and I be worried? If yes, why? If no, why? Should she abrogate he dollar insurance plan and keep the money in the bank instead? Move 50% of her money out of the Philippines or what?

The reason I am asking is because our bank manager can't really what explain the announcement means to us and also because my aunt considers me financial adviser (when her head isn't caught up in the clouds or being whispered into by self serving relatives) and she will never forgive me if I manage to lose all her retirement money. Warning: my aunt has a tendency to join money scams and lose her shirt so what I really want to know is, is it normal for banks to adopt new currency trading platforms or is that just a scam to protect the government while they legally take what others worked really hard to save up?

When I checked in Wikipedia, the scenario I got wasn't good. The only countries that they have listed which adopted new dollar to whatever denomination platform trading change usually ended up on the brink if not in a civil war. That would namely be Argentina and Russia. Argentina even had to freeze all bank accounts and close their banks. Seems only China managed to use the technique successfully.
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